Questions 1 to 5 are based on the case study Continuous supply re-engineering at the Ford Motor Company on page 251 of your prescribed book. (Note that although the case study comes from chapter 10, the chapter content need not be studied.) QUESTION 1 The following quote shows how reengineering at the Ford Motor Company improved closing the order as a step in the purchasing and supply process: [1] re-engineer its external network by eliminating the correlations with smaller suppliers. [2] these suppliers were given access to Fords computerised manufacturing schedule. [3] If the shipment from the supplier did not match the order, such an order was refused and returned. [4] the computerised system would issue and send a cheque to the supplier.

QUESTION 2 The following quote shows how reengineering at the Ford Motor Company improved origin and description of the need as a step in the purchasing and supply process. [1] these suppliers were given access to Fords computerised manufacturing schedule. [2] The idea was to work very closely with a limited number of suppliers [3] re-engineer its external network by eliminating the correlations with smaller suppliers. [4] On receipt, the shipment (if in all respects identical to the order) was to be recorded as received on the database QUESTION 3 Ford took steps to reduce their accounts department from 500 employees to 125 employees after following a control process. What action was most likely performed in the first step of the control process of identifying objectives and determining the scope of the purchasing and supply function? [1] Establishing qualitative measures, such as the human relations in the accounts department. [2] Observing that Mazda had increased efficiency with fewer staff members in the accounts department. [3] Benchmarking against Mazda to identify discrepancies in the respective accounts departments. [4] Compiling a report to highlight areas where performance in the accounts department was unsatisfactory.

QUESTION 4 Ford followed a strategy of supply base optimisation when they decided to work very closely with a limited number of suppliers. Under which of the following circumstances would Ford benefit from the concentration of purchases from a limited number of suppliers? [1] When buying from small local businesses to show Fords community involvement [2] When one supplier provides the product and another the support service to Ford [3] When one supplier cannot supply in Fords future needs [4] When electronic data is interchanged between Ford and its suppliers

QUESTION 5 In the months before re-engineering at Ford, the head of purchasing and supply management was probably asked to quantify the financial benefit of this division for the Ford Motor Company. Since purchasing and supply affects the elements of Fords return on investment (ROI), which of the following figures for the previous five financial years were most probably requested from Fords finance department to do the calculation? [1] sales value, total cost, value of fixed assets, value of current assets [2] sales volume, total cost, value of fixed assets, value of current assets [3] total returns, value of fixed assets, value of current assets [4] sales value, purchasing cost, supply cost, total assets